MIPIM 2006: Lithuanian cities turn into real estate development hot spots (LT)

The largest Lithuanian cities once again will be involved in MIPIM and invite investors and developers to renew their investment portfolio and become partners in creating centres for sports and leisure activities, cultural events, international conferences, and marine tourism. Continued impressive growth of Lithuanias economy and increased consumer spending power initiated steady growth in the real estate sector.

The real estate market boom spread out from the capital Vilnius to other major Lithuanian cities, turning them into real estate development hot spots. New constructions of modern shopping centres, commercial and recreational sites, warehouse/logistics and residential buildings are now being developed across Lithuania.

While Lithuanian commercial, retail and industrial property market development in the year 2005 seemed very active, market growth in the year 2006 is not losing speed.

Municipalities have prepared 35 projects for investors. Culture infrastructure, sports and entertainment centres, and leisure resorts are the basic projects for this years MIPIM. The main reason for this direction is that Lithuania will be the host country for some important European events in coming years. Vilnius was named European Capital of Culture 2009. Lithuania is the first country among the new member states to have its capital nominated for the European Capital of Culture status. Lithuania will also host the European Mens Basketball Championship in 2011. Being one of the leading basketball nations in Europe, Lithuania has resolved to build new sports sites for the coming event.

The Vilnius Municipality is intensively developing the new part of the city centre located on the right bank of the Neris River. A 120 ha territory has been designated for construction of modern business, shopping centres and residential buildings. Vilnius plans to attract up to EUR 36 million in investments for an international conference centre and new city centre park (approx. 16 ha).

The Kaunas Municipality has initiated development of the Kaunas Entertainment and Sports Arena. A multifunctional arena will be constructed in a prime 11 ha territory in the city centre on Nemunas Island. The project will receive up to EUR 22 million of investments.

The Klaipeda Municipality has started regeneration of the historic part of the city. A 38 ha territory will be developed in order to make it more attractive for residents, entrepreneurs and tourists. Regeneration will open access from the Old Town to the surrounding waterfronts, the old castle territory will be adapted for culture and tourism, and new public spaces will also be arranged. The project will attract up to EUR 200 million of investments.

The iauliai Municipality has started developing a so-called culture factory project. The citys goal is to revitalise the 19th century-style central part of the city and to adapt it for commercial, sports and cultural activities. The culture factory will be developed in a 300 ha territory. Plans are to attract up to EUR 400 million of investments.

The Paneveys Municipality is determined to build a new sports and leisure complex. A nine hectare territory will receive up to EUR 29 million in investments. The Sports and Entertainment Centre will consist of a multifunctional sports arena, a health care centre, and an ice rink. Plans are to arrange a 250-metre-long Olympic cycling track as one of the exclusive elements of this complex.

The Elektrenai Municipality is developing a modern complex in an 18 ha territory, which will connect tourism, recreation, and science and youth education centres. The so-called Youth Coast and Energoland plan to attract approximately EUR 100 million in total.

Today Lithuania is surprising the world with its strength and rapid growth in all sectors of the countrys life. Lithuanian cities invite you to renew your investment portfolio.

Source: MIPIM

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